Industry News
Mortgage Industry News
Today’s Market Update
08/10/2011
The roller coaster ride continues as treasury prices are surging higher this morning. Yesterday’s swift price movement was nothing short of astonishing as treasury prices were whipsawed while investors digested the FOMC statement. Treasury prices initially soared after the release but quickly reversed course as equity prices embarked on an impressive rally. Today’s economic calendar has already produced an impressive gain of 21.7% in the latest release of the weekly MBA mortgage applications index. The gain was not too surprising given the recent move lower in mortgage rates. Refinances led the way higher with a 30.4% spike; meanwhile purchases unexpectedly stalled and actually fell by -0.9%. Currently, the 10yr yield is at 2.206% (2.403% Tuesday) and the 2-10 yield spread is at 203bps, flatter by 9 bps since yesterday morning.
